Computer Error Boosts Medicare Drug Costs

Alarm bells sounded when Sen
Richard Durbin (D, Ill) and the media
pointed out discrepancies in annual
cost estimates on Medicare's Web site.
The errors were brought to the attention
of the Centers for Medicare and Medicaid
Services (CMS) when questions
arose about why some plans' annual
cost estimates have changed since the
Web site was launched last month.

CMS spokesman Gary Karr said that
the Web site is updated weekly with
the latest information from the plans.
The plans are permitted to adjust drug
prices and the amounts Medicare
members will pay for those drugs. He
explained that CMS found that a computer
data problem was falsely inflating
drug prices for a plan offered by
UnicareMedicare Rx Rewards Premier.
Unicare's plan was cited by
Durbin in a letter to the Department of
Health and Human Services. The senator
questioned why the Unicare cost
estimate had increased by >$1250
since mid-November.

At press time, CMS was working to
correct the problem. Karr noted that
CMS was aware of a similar problem
with another plan but could not rule out
possible problems with additional plans.